On a seasonally-adjusted basis, overall consumer prices rose 1.3 percent in June, with the Bureau of Labor Statistics reporting that the overall consumer price index (CPI) grew by 9 percent year-over-year. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the data in a new Macro Data Flash report.
“Year-over-year price growth accelerated to a 40-year record high,” stated Long. “Energy was a key contributor, with energy prices increasing by 7.5 percent during the month.” From a year ago, energy prices were up 41.5 percent, whereas food prices rose 10.4 percent.
Core prices (excluding food and energy costs) rose by 0.7 percent compared to the previous month. Year-over-year core CPI growth was 5.9 percent.
“Looking forward, the recent drop in gas prices gives reason to believe growth in energy prices may slow in July,” added Long. “Inventory glut continues to plague retailers like Walmart, which had inventory-moving price cuts already in place going into July, and announced it would not have an event to compete with Amazon Prime Day this year.”
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